£1.5m expenses claim as Liverpool FC stadium faces delays

Jun 10 2008 by David Bartlett, Liverpool Daily Post

Liverpool FC owners George Gillett (left) and Tom Hicks _320

LIVERPOOL FC fans last night reacted with anger at the revelation the club’s American owners Tom Hicks and George Gillett had notched up £1.5m in expenses in the first seven months of their tenure.

The Kop Football (Holdings) Ltd figures, which show a £33m loss on the year ending July 31, 2007, include transaction, travel and personal claims.

Kop Holdings’ first set of accounts released, show that from December 2006 to July 31 2007, £823,000 was incurred by George Gillett for “transaction related expenses” – understood to be claims built up during the acquisition of the club – and a further £375,000 for “reimbursable travel, legal, personnel and other expenses.”

At July last year £100,000 of this was listed as unpaid. During the same period, the company incurred £133,000 for transaction related expenses on Tom Hicks’s behalf and £198,000 for reimbursable travel, legal and other expenses.

Of that £244,000 of these amounts were listed as unpaid at July 31, 2007.

The accounts also show that during the January refinancing of the club, an inter-company loan of £64m was made, seemingly to service the interest repayments incurred.

The accounts also reveal the owners wrote off £10.3m when they scrapped the club’s design for a new stadium after their takeover in February 2007, and the likelihood of work beginning any time soon on the new stadium is remote.

Last night Les Law- son, secretary of the LFC official supporters association, said: “The accounts have only strengthened the fans’ resolve against the American ownership.”